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Full text of "Annual Evaluation Report Fiscal Year 1984"

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522-2

A.   Goals and Objectives (continued)

o Administer the annual loan competition in an accurate and sound manner
and to ensure that awards were made on schedule.

o Continue efforts in credit management improvement to ensure that sound
loans were made, and to ensure that the Federal interest was protected.
Continue to improve the verification and validation controls of the
program.

o Support the objectives of the President's Executive Order 12320 to
assist historically black colleges and universities.

B.   Progress and Accomplishments

o In FY 1984, the Department awarded $40 million in new loan commitments
supporting 11 housing construction projects and 18 energy conservation
projects. The loan competition was accurate, sound, and timely, in
part because computers were used to rank housing applications. ED also
continued to use engineering consultants to review and monitor projects
in order to ensure project feasibility and compliance.

o   ED improved its credit management as follows:

-  Used the government field expense allotments, a legislative set-aside,
in order to monitor projects through the construction period.

-  Continued   to   use   procedures  to   ensure  the   financial   soundness   of
new loans  using  such   resources   as   Federal   Reserve  Bank delinquency
listings, financial status reports, and regulatory provisions relating
to institutional eligibility and loan cancellation.

-  Completed   inventory   of   all   closed   projects   to  ensure   prompt   and
proper billing by the Federal Reserve Bank, cancelled inactive loans,
and enforced   policy   requiring   institutions   to   begin    construction
within 18 months of loan reservation.

-  Continued procedure to ensure prompt delivery of notes and bonds to
the Federal Reserve Bank.

-  Conducted  more   1n-depth   credit   review  with   special   conditions   if
necessary on loan agreements.

o The Department awarded nearly 20 percent of available funds to histori-
cally black colleges and unversities 1n FY 1982, and again exceeded the
regulatory 10 percent minimum set-aside provision for those Institutions
in FY 1983. The Department awarded 23 percent of FY 1984 funds $9,327,000
to those institutions.ostsecondary education